Philippine stocks post modest gains after losses in morning trade

MANILA, Philippines — Most local stocks closed modestly higher on Monday, wiping out losses in morning trade, aided by gains eked out by the property and mining/oil counters.

The main-share Philippine Stock Exchange index added 8.43 points or 0.16 percent to finish at 5,271.78 in mixed trade.

Property and mining/oil counters helped firm up the index,  respectively rising by 1.25 percent and 1.34 percent, and making up for the slack in the financial, industrial and services counters.  The holding firms counter was likewise a tad higher.

Among the day’s outperformers were ALI (+3 percent) and Globe Telecom (+2.65 percent) while a recovery by `EDC (+1.9 percent) and Philex (+1.16 percent) also contributed to the index gains.  SMIC, AP, AEV, AC, DMCI, URC and ICTSI also contributed to the PSEi’s gain.

On the other hand, the PSEi’s gain was capped by the share price decline of Metrobank (-1.63 percent), AGI (-0.36 percent) and PLDT (-0.44 percent).

Value turnover amounted to P4.2 billion.  There were 78 advancers that narrowly edged out 71 decliners while 41 stocks were unchanged.

A CIMB-SB Equities joint research issued on Monday said trading for this week might remain listless, with investors waiting for a complete assessment of the extent of impact that the torrential rains have brought on the economy.

Metropolitan Bank, in its daily commentary noted that Wall Street had rallied for a sixth straight session on Friday on hopes for further policy accommodations.

On the local side, the domestic market might experience a downward pressure on the back of weaker-than-expected Japanese second quarter gross domestic product growth at 1.4 percent versus estimates of 2.3 percent. “Meanwhile, positive trading catalyst for the week would still be the second quarter corporate earnings results,” Metrobank said.

“Currently, the market is attempting to hold the 5,230 level, however, if broken, may re-attempt the 5,150 support. The market remains to be in consolidation mode and may stay within trading range due to a lack of catalyst as earnings season comes to a close, and valuation concerns resurface,” DA Market Securities said.

A possible catalyst for the week would be the MSCI August index review, DA Market Securities said, noting that changes in weighting or composition would be in on August 15 and adjustments would likely take effect by Sept. 3.